* Organized by the ILO Caribbean Office, and with collaboration with DEVINVEST HQ (Geneva), under the Decent Work and Resilience Project ILO Training ILO Training ILO Training ILO Training Building Resilience through Public Employment Programmes* 16 16 16 16- - -20 December 2019 20 December 2019 20 December 2019 20 December 2019 Port of Spain, Trinidad and Tobago Port of Spain, Trinidad and Tobago Port of Spain, Trinidad and Tobago Port of Spain, Trinidad and Tobago
Transcript
* Organized by the ILO Caribbean Office, and
with collaboration with DEVINVEST HQ (Geneva),
under the Decent Work and Resilience Project
ILO TrainingILO TrainingILO TrainingILO Training
Building Resilience through Public Employment Programmes*
16161616----20 December 201920 December 201920 December 201920 December 2019
Port of Spain, Trinidad and TobagoPort of Spain, Trinidad and TobagoPort of Spain, Trinidad and TobagoPort of Spain, Trinidad and Tobago
Session 2: The role of PEPs in development:
supporting SDGs
• 300 million workers continue to live in extreme poverty
and informality.
• Staggering 700 million workers globally living in poverty
despite having employment
• Additional risks :
• Climate change, scarce natural resources,
environmental degradation
• Protracted conflicts and violence
• Low levels of human development
• Instability, insecurity, erosion of trust in governance
leading to polarization and populism
• Forced migration and displacement
• Requirements:
• Address poverty and inequality
• Address structural imbalances
• Protect existing resources
• Build resilience and address the root causes of
fragility
• Importance of multilateralism
The Reality
Complex and interconnected reality, multiple threats
Impacts of Climate Change
• Sea level rise, recognized climate change threats to low-lying coastal areas on islands and atolls. Given the dependence of island
communities on coral reef ecosystems for a range of services including coastal protection, subsistence fisheries, and tourism, there
is high confidence that coral reef ecosystem degradation will negatively impact island communities and livelihoods. (IPC 2018).
• Decreasing rainfall and increasing temperature. Rainfall records averaged over the Caribbean region for 100 years (1900–2000)
show a consistent 0.18 mm yr–1 reduction in rainfall, a trend that is projected to continue (IPCC 2018).
• The Caribbean has been identified as a “highly endemic zone for leptospirosis,” with Trinidad and Tobago, Barbados, and Jamaica
representing the highest annual incidence in the world. (IPCC 2018)
• Increased number hurricanes. 102 countries were faced with 950 climate-related disasters forcing 7 million displaced Asia and
Africa between January and June 2019 (IDMC 2019)
• Heat stress. 2.2 per cent of total working hours worldwide lost, a loss equivalent to 80 million full-time jobs. This is equivalent to
global economic losses of US$2,400 billion (ILO 2019)
• Adaptation to climate change generates larger benefit to small islands when delivered in conjunction with other development
activities, such as DRR and community-based approaches to development (IPCC 2018)
SOCIAL JUSTICE and Just Transition
is about helping
the vulnerable adapt to climate change and
to protect their natural wealth
Inequality gaps and the future?
• Structural Structural Structural Structural problemproblemproblemproblem - Inability of economy to:
• (i) generate sufficient number of jobs,
• (ii) improve the quality of employment for those employed,
• (iii) ensure that the growth is inclusive
• Labour force > than jobs (600M new jobs needed)
• Youth unemployment Youth unemployment Youth unemployment Youth unemployment = early labour market exclusion
Increasing social, economic
and security -instability!
Why the ILO?
• Human-centred approach
• Universal representation of the world of work
• Lasting peace based on social justice
• DW is promoted through employment generation, social dialogue, social protection and adherence to international labour standards
• ILO combines focus on employment and income security but also education, rights at work, OSH, SP, etc.
• Link between humanitarian-development-peace
nexus
The value added of the ILO :
“The SDGs are a disruptive agenda, “The SDGs are a disruptive agenda, “The SDGs are a disruptive agenda, “The SDGs are a disruptive agenda, whether or not you use that word. This whether or not you use that word. This whether or not you use that word. This whether or not you use that word. This
isn’t businessisn’t businessisn’t businessisn’t business----asasasas----usual and status usual and status usual and status usual and status quo….. quo….. quo….. quo…..
To the extent that it is, it’s a fiction. To the extent that it is, it’s a fiction. To the extent that it is, it’s a fiction. To the extent that it is, it’s a fiction. Let’s not discover in 2030 that we Let’s not discover in 2030 that we Let’s not discover in 2030 that we Let’s not discover in 2030 that we
didn’t mean it.” didn’t mean it.” didn’t mean it.” didn’t mean it.”
• Universality principle: SDGs apply to all, not targets for the “Developing Countries” Many developed countries will struggle to achieve their SDGs.
• “Leave no one behind” principle: Means we need to get the High Hanging Fruit! Not OK anymore to reach only 90% of the poor
• SDGs are “Indivisible”: All the SDGs depend on other SDGs- they cannot be achieved in isolation - sometimes they can even present trade-offs
• Accountability: No more Donor-Recipient structure where the “South is accountable to North for achieving the MDGs”. Accountability is of national leaders to their own people. Move beyond “North-South” relationship
Why are the SDGs disruptive?
PEPs and SDGs…. PEPs and SDGs…. PEPs and SDGs…. PEPs and SDGs….
Public Employment Programmes(PEP) are a versatile policy
Instrument which can be used to contribute to various SDGs - often
simultaneously
What is the rationale for Public Employment Programmes (PEPs)?
The state has an active role to play in responding to under and unemployment:
• Work as a right that government has to realize - consistently…
• Quest for full employment, and reduced labour underutilization
• Address (labour) market failures
• Government to mitigate the negative societal effects unemployment
• Role of state (and partners) can be especially critical in “special” circumstances: times of economic cycles, extreme poverty, conflict, crises and disasters
11
Employer of Last Resort (ELR)
• ELR provides a theoretical framework for the EGS as proposed by Minsky.
• Generally Government’s role as “Lender of Last Resort” in financial markets is accepted
• Employer of Last Resort proposes a similar role in labour markets
• State provides employment when the market does not
• Promoted as one important policy tool to achieve full employment
• Based on the notion of productive work and putting under utilized resources to work - to contain inflationary pressures
•What is “last resort” differs politically and socially
• A vehicle to provide predictable income or transfers in cash or in kind, by generating employment and creating needed or useful public goods and services• Maintaining and/or rehabilitating assets and infrastructure.• Providing useful and needed services
• Public works refer to community-based and public or privatefinanced programmes that support the poor and food insecurepopulation.
• Main objective is ‘Income Security’ and extending Social Protection,with secondary objectives of employment and asset / service creation
• Often times financed by Social Funds
The Role of PEPs
PEPs are …. PEPs are …. PEPs are …. PEPs are ….
… publically-funded employment programmesoutside the normal civil or public service, whose
purpose is to employ people, with that employment used to contribute to the delivery of assets and
services that create public value and contribute to the public good.
They have a long history as an instrument of public policy, historically often used to respond to cyclical unemployment
and/or disaster management situations.
Employment Guarantees Schemes (EGS)
• Practical instrument for putting an ELR scheme in place
• An EGS provides a legal (or implicit guarantee) of work at minimum conditions
• Can be universal, or offered to a more limited target group
• Self selecting- people chose to exercise their right
• From labour market perspective effectiveness three issues are critical
• Wage level
• Accessibility to the programme
• Contestation in the labour market
PEPs
PEPs and Social Protection
• In the developed world, unemployment insurance is an important part of social protection
• In the developing world: how to measure ‘unemployment’?
• People are under-employed, self-employed, informally employed, engaged in subsistence activity...
• In many developing countries the informal economy is huge
• An unemployment allowance has risks of massive errors of inclusion – people claiming an allowance but working in the informal sector.
• An employment guarantee: allows self-selection through participation in work.
• If participants are actually working informally, or can earn better incomes from self-employment - they won’t participate.
• A mechanism responsive to real conditions.
EGS: An instrument of social protection where there is EGS: An instrument of social protection where there is EGS: An instrument of social protection where there is EGS: An instrument of social protection where there is widespread informality and underemployment?widespread informality and underemployment?widespread informality and underemployment?widespread informality and underemployment?
Role of work in society
Aversion to dependency
Stigma with being
unemployed
Stigma of being
“targeted”
Stigma with being on welfare
Self perception
Expectation to contribute to
society
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Important cultural dimension!
PEPs and Public expenditurePEPs and Public expenditurePEPs and Public expenditurePEPs and Public expenditure
• What is the difference between a PEP that delivers on rural infrastructure and public infrastructure programme (PIP) investing in rural infrastructure?
• On the ground- they may look very similar: people building a rural road!
• Important difference is the entry point:
PEP:
We need to create X jobs-
how do we go about it?
PIP: We need to create X
km of road, how do we go
about it?
PEP: One policy option to address PEP: One policy option to address PEP: One policy option to address PEP: One policy option to address particular risks particular risks particular risks particular risks experienced by experienced by experienced by experienced by working age populationworking age populationworking age populationworking age population
• Life cycle • Before working years
• During working years PEP
• After working years
� Risks/events• Poverty PEP
• Market failures and un (de)employment
• Maternity
• Disability
• Sickness
• …..
PEP
Public Investments Public Investments Public Investments Public Investments
Assets / Services
(e.g. agriculture, care, environment, transport
sectors)
Social Protection
“Protect Vulnerable Against Risks through
income security throughout the
lifecycle”
increase or optimize employment
(quantity and quality)
Improve employment (quantity
and quality) and assets
Emergency Employment Extending Social Protection
Environment and Social Safeguarding
LRB Approaches
Trade and Employment Impact Assessments (EmpIA): assess which sectors have best
potential for direct, indirect and induced impacts
Small-scale and community contracting
Gender Mainstreaming
Sectoral Strategies &
Investments
Employment
“Create employment with all its concurrent
benefits”
Income levels and wages
PEPs
Competing Objectives- “Trilemma”
EmploymentEmployment
Assets &
Services
Assets &
Services
Social
Protection
Social
Protection
“Create employment with all
its concurrent benefits”
“Improve quality of life and
facilitate access to markets
through assets and services”
“Protect Vulnerable Against Risks
through securing income throughout
the life cycle”
Design Objective: Design Objective: Design Objective: Design Objective: Programme that finds Programme that finds Programme that finds Programme that finds
the right balance of the the right balance of the the right balance of the the right balance of the three objectives three objectives three objectives three objectives within within within within
the specific contextthe specific contextthe specific contextthe specific context
and manages the and manages the and manages the and manages the tensionstensionstensionstensions
What type of programme?
Platypus
The bizarre appearance of this egg-laying, venomous, duck-billed, beaver-tailed, otter-
footed breastfeeding animalbaffled European naturalists
when they first encountered it, with some considering it an
